Change ssn in the Revocable Living Trust

Aug 6th, 2022
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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.
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Since a revocable trust allows you to revoke your assets from the trust, the IRS considers assets placed into this type of trust to still be owned by the taxpayer.
Because grantors dont always acquire an EIN for the created trust, their heirs or beneficiaries may have to do so after the fact. If the grantor in a revocable trust has died, making the trust irrevocable, you will need to complete the application for an EIN.
A revocable, living trust remains under control of the grantor of the trust, and because of this it doesnt need a tax ID. Instead, the trust will use the same tax ID as the grantor. On the other hand, if the trust is an irrevocable trust, its no longer under the direct control of the grantor.
Yes, a revocable trust needs a tax ID. But it doesnt need its own tax ID. A revocable trust uses the social security number of its grantor as its tax ID. A grantor will place assets into the revocable trust, and their SSN will be used for tax purposes.
Assets that should not be used to fund your living trust include: Qualified retirement accounts 401ks, IRAs, 403(b)s, qualified annuities. Health saving accounts (HSAs) Medical saving accounts (MSAs) Uniform Transfers to Minors (UTMAs) Uniform Gifts to Minors (UGMAs) Life insurance. Motor vehicles.
During the grantors life, the trust is revocable and taxes are paid by the grantor as an individual, using the grantors SSN (Social Security Number). In other words, when an institution requests an SSN or EIN (Employer Identification Number) for trust property, the grantor just uses his or her own SSN.
With a revocable trust, the entire trust is the persons resource. With an irrevocable trust, if there are parts of the trust in which payments could be made to benefit the person, then that amount will be viewed as a resource. Resources are a key factor in determining a persons eligibility for SSI.
Any income generated by a revocable trust is taxable to the trusts creator (who is often also referred to as a settlor, trustor, or grantor) during the trust creators lifetime. This is because the trusts creator retains full control over the terms of the trust and the assets contained within it.

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